Trump Orders Investigation into Trade Deficits

WASHINGTON (Reuters) – U.S. President Donald Trump is ordering federal agencies to “investigate and remedy” persistent U.S. trade deficits and to address unfair trade practices and currency manipulation from other countries.

According to a draft White House trade memo seen by Reuters, the order stops short of mandating immediate new tariffs. The memo is expected to be signed shortly.

Additionally, it directs federal agencies to evaluate China’s performance under the “Phase 1” trade deal signed in 2020, aimed at ending a nearly two-year tariff war. This agreement required China to increase U.S. exports by $200 billion over two years but Beijing did not meet these targets due to the impact of the COVID-19 pandemic.

“China’s adherence to this agreement will now be assessed to determine whether enforcement or changes are required,” the memo states.